VANCOUVER, BC, March 5,
2025 /CNW/ - (TSX: LUN) (Nasdaq Stockholm: LUMI)
Lundin Mining Corporation ("Lundin Mining" or the
"Company") is pleased to announce today that it has entered
into exclusivity to negotiate an earn-in agreement (the "Option
Agreement") with Talon Metals Corp. ("Talon") for the right to
acquire up to a 70% ownership interest in the Boulderdash
exploration properties ("Boulderdash") which are adjacent to the
Company's Eagle Mine. Concurrently with the execution of the
exclusivity agreement, Lunding Mining has advanced Talon
US$5 million to, among other things,
commence drilling at Boulderdash. If the parties do not execute the
Option Agreement, Talon will either repay such advance or issue
shares to the Company with an aggregate subscription price equal to
such advance based on the 5-day volume weighted average price of
Talon shares on the TSX at the time of issuance. View PDF
It is anticipated that pursuant to the terms of the Option
Agreement, Lundin Mining will agree to fund up to 30,000 metres (m)
of Talon's drilling campaign at Boulderdash in exchange for a
44.625% interest in Boulderdash. Such drill campaign will be
completed in 10,000 m tranches at the
election of Lundin Mining. Following the completion of 30,000 m of drilling, the Company may fund a
feasibility study in respect of the Boulderdash property in
exchange for an additional 25.375% interest in Boulderdash, for a
total ownership of 70%, as well as the potential for a 90% interest
in certain properties adjacent to Boulderdash.
Boulderdash Properties
The Boulderdash target is located approximately 12 kilometres
northwest of Lundin Mining's Eagle Mine in Michigan, the only operating nickel mine in
the U.S. The maiden drill hole at Boulderdash announced last year
on October 24, 2024 (see Talon
release "Talon Metals Makes New Copper-Nickel Discovery in
Michigan") intercepted
99.92 m grading 0.41% nickel and
0.35% copper starting at 9.14 m
depth, more recent drilling has intercepted 2.35 m of nickel-copper massive sulphide
mineralization assaying 2.33% nickel and 2.95% copper (press
release dated February 27, 2025
"Talon Metals Reports More Drilling Success and Assays From its
Michigan Boulderdash Discovery"). As part of the option agreement
Lundin Mining will fund an initial 10,000
m drill program to follow up on recent drill results.
About Lundin Mining
Lundin Mining is a diversified Canadian base metals mining
company with operations or projects in Argentina, Brazil, Chile, and the
United States of America, primarily producing copper, gold
and nickel. In December 2024 the
Company announced the sale of its European assets to Boliden. The
transaction is expected to close in mid-2025 subject to customary
conditions and regulatory approvals.
The information in this release is subject to the disclosure
requirements of Lundin Mining under the Swedish Financial
Instruments Trading Act. The information was submitted for
publication, through the agency of the contact persons set out
below on March 5, 2025 at
14:30 Pacific Time.
Technical Information
The scientific and technical information in this press release
has been prepared in accordance with the disclosure standards of
National Instrument 43-101 ("NI 43-101") and has been reviewed by
Cole Moody, PGeo., Director,
Resource Geology, a "Qualified Person" under NI 43-101. Mr. Moody
has verified the data disclosed in this release and no limitations
were imposed on his verification process.
Cautionary Statement on Forward-Looking
Information
Certain of the statements made and information contained
herein are "forward-looking information" within the meaning of
applicable Canadian securities laws. All statements other than
statements of historical facts included in this document constitute
forward-looking information, including but not limited to
statements regarding: the Company's plans, prospects and business
strategy; the earn-in arrangement in respect of the Boulderdash
property, including the entering into of an Option Agreement in
respect thereof and the terms of such Option Agreement; future
actions taken by Talon and Lundin Mining in relation to the
Boulderdash property and the outcomes and anticipated benefits
thereof; and expectations for other economic, business, and/or
competitive factors. Words such as "believe", "expect",
"anticipate", "contemplate", "target", "plan", "goal", "aim",
"intend", "continue", "budget", "estimate", "may", "will", "can",
"could", "should", "schedule" and similar expressions are often,
but not always, used identify forward-looking information.
Forward-looking information is necessarily based upon various
estimates and assumptions including, without limitation, the
expectations and beliefs of management, including that the Company
and Talon can successfully negotiate and enter into an Option
Agreement, as well as the terms of such Option Agreement and the
anticipated benefits of such arrangement; that the results of
exploration activities at Boulderdash will be consistent with
management expectations in relation thereto; the ability of Talon
and Lundin to identify opportunities at Boulderdash and achieve
related goals; assumed and future price of copper, zinc, nickel,
gold and other metals; anticipated costs; that the political
environment in which the Company operates will continue to support
the development and operation of mining projects, including at
Boulderdash; and assumptions related to the factors set forth
below. While these factors and assumptions are considered
reasonable by Lundin Mining as at the date of this document in
light of management's experience and perception of current
conditions and expected developments, these statements are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking information and undue reliance
should not be placed on such information. Such factors include, but
are not limited to: the failure of the Company and Lundin to
successfully negotiate the terms of an Option Agreement in a timely
manner, or at all; the failure of the Company to realize the
anticipated benefits of an Option Agreement; global financial
conditions, market volatility and inflation, including pricing and
availability of key supplies and services; risks inherent in mining
including but not limited to risks to the environment, industrial
accidents, catastrophic equipment failures, unusual or unexpected
geological formations or unstable ground conditions, and natural
phenomena such as earthquakes, flooding or unusually severe
weather; uninsurable risks; volatility and fluctuations in metal
and commodity demand and prices; reputation risks related to
negative publicity with respect to the Company, Talon or the mining
industry in general; delays or the inability to obtain, retain or
comply with permits; risks relating to the development of the
Boulderdash property and the Company's projects; health and safety
laws and regulations; risks associated with climate change; risks
relating to indebtedness; economic, political and social
instability and mining regime changes, including but not limited to
those related to permitting and approvals, nationalization or
expropriation without fair compensation, environmental and tailings
management, labour, trade relations, and transportation; an
inability to attract and retain highly skilled employees; project
financing risks; liquidity risks and limited financial resources;
health and safety risks; compliance with environmental and other
laws and regulations; unavailable or inaccessible infrastructure;
infrastructure failures, and risks related to ageing
infrastructure; changing taxation or tariff regimes; an inability
of the Company to effectively compete in the industry; risks
associated with any earn-in right in respect of the Boulderdash
property, including with respect to ability to achieve anticipated
benefits thereof and unanticipated difficulties or expenditures
relating to the exploration and development of the Boulderdash
property; risks related to mine closure activities, reclamation
obligations, environmental liabilities and closed and historical
sites; reliance on key personnel and reporting and oversight
systems, as well as third parties and consultants; information
technology and cybersecurity risks; risks associated with the
estimation of Mineral Resources and Mineral Reserves and the
geology, grade and continuity of mineral deposits including but not
limited to models relating thereto; actual ore mined and/or metal
recoveries varying from Mineral Resource and Mineral Reserve
estimates, estimates of grade, tonnage, dilution, mine plans and
metallurgical and other characteristics; ore processing efficiency;
community and stakeholder opposition; regulatory investigations,
enforcement, sanctions and/or related or other litigation;
financial projections, including estimates of future expenditures
and cash costs, and estimates of future production may not be
reliable; risks associated with the use of derivatives;
environmental and regulatory risks associated with the structural
stability of waste rock dumps or tailings storage facilities;
exchange rate fluctuations; compliance with laws; potential for the
allegation of fraud and corruption involving the
Company, its customers, suppliers or employees, or the allegation
of improper or discriminatory employment practices, or human rights
violations; risks relating to dilution; risks relating to payment
of dividends; counterparty and customer concentration risks;
activist shareholders and proxy solicitation matters; estimation of
asset carrying values; existence of significant shareholders;
challenges or defects in title; internal controls; risks relating
to minor elements contained in concentrate products; the threat
associated with outbreaks of viruses and infectious diseases;
mining rates and rehabilitation projects; mill shut downs; and
other risks and uncertainties, including but not limited to those
described in the "Risks and Uncertainties" section of the Company's
Annual Information Form for the year ended December 31, 2024, which is available on SEDAR+
at www.sedarplus.com under the Company's profile.
All of the forward-looking information in this document are
qualified by these cautionary statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated, forecasted or intended
and readers are cautioned that the foregoing list is not exhaustive
of all factors and assumptions which may have been used. Should one
or more of these risks and uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking information.
Accordingly, there can be no assurance that forward-looking
information will prove to be accurate and forward-looking
information is not a guarantee of future performance. Readers are
advised not to place undue reliance on forward-looking information.
The forward-looking information contained herein speaks only as of
the date of this document. The Company disclaims any intention or
obligation to update or revise forward‐looking
information or to explain any material difference between such and
subsequent actual events, except as required by applicable
law.
SOURCE Lundin Mining Corporation
